Does portfolio manager ownership affect fund performance ... - LTA

D o e s p o r t f o l i o m a n a g e r o w n e r s h i p a f f e c t f u n d p e r f o r m a n c e ? …Table 2. Descriptive statistics on portfolio manager ownership – all sample funds.This table documents the amount of ownership that portfolio managers have in the funds they run as ofDecember 31, 2003–2005. The ownership includes the manager’s personal ownership as well as the possibleownership of his firm. The mean, 50 th , 75 th , 90 th and 100 th percentiles of ownership figures are reported.Panel A documents the amount of ownership in euros and Panel B as a percentage of the manager’s totaltaxable net wealth. Panel C documents the ownership as a percentage of the manager’s annual taxableemployment income and Panel D as a percent of the fund’s total assets.Panel A Managerial ownership (€)Fund typeN% of funds withpositive ownership Mean 50th 75th 90th 100thAll funds 460 31 5.179 0 324 5.137 498.394Balanced 100 31 3.513 0 718 3.419 68.141Domestic equity 54 30 2.915 0 425 5.831 47.103International equity 183 34 8.114 0 361 6.576 498.394Bond 39 13 299 0 0 675 8.615Corporate bond 28 29 196 0 10 626 2.519Money market 48 33 2.983 0 205 6.586 31.943Other 8 63 29.002 10.205 35.660 84.288 117.300Panel B Managerial ownership (% of the manager's taxable wealth)Fund typeN% of funds withpositive ownership Mean 50th 75th 90th 100thAll funds 380 16 1.91 0.00 0.00 2.01 60.22Balanced 82 16 1.95 0.00 0.00 4.37 37.05Domestic equity 49 22 0.90 0.00 0.00 1.96 17.73International equity 150 19 1.85 0.00 0.00 2.11 60.22Bond 36 6 1.31 0.00 0.00 0.00 44.64Corporate bond 20 0 0.00 0.00 0.00 0.00 0.00Money market 39 18 5.08 0.00 0.00 28.86 56.13Other 3 0 0.00 0.00 0.00 0.00 0.00Panel C Managerial ownership (% of the manager's taxable income)Fund typeN% of funds withpositive ownership Mean 50th 75th 90th 100thAll funds 397 20 5.97 0.00 0.00 2.83 658.79Balanced 82 16 0.39 0.00 0.00 1.16 9.13Domestic equity 50 24 1.71 0.00 0.00 4.25 39.39International equity 155 22 11.53 0.00 0.00 3.33 658.79Bond 36 6 0.46 0.00 0.00 0.00 14.80Corporate bond 25 25 0.26 0.00 0.00 0.07 4.56Money market 43 26 2.90 0.00 0.00 8.87 28.88Other 5 40 63.18 0.00 143.14 160.91 172.751 0 1Panel D Managerial ownership (% of the fund's total assets)Fund typeNContinued% of funds withpositive ownership Mean 50th 75th 90th 100thAll funds 460 31 0.05 0.00 0.00 0.02 4.71Balanced 100 31 0.04 0.00 0.00 0.04 1.26Domestic equity 54 30 0.01 0.00 0.00 0.03 0.31International equity 183 34 0.08 0.00 0.00 0.02 4.71Bond 39 13 0.00 0.00 0.00 0.00 0.02